JP Morgan Confirms Bitcoin Price Surge Mimics 2017 Bull Run

JP Morgan Confirms Bitcoin Price Surge Mimics 2017 Bull Run

Bitcoin has suffered a terrible bear market in 2018 and the first quarter of 2019. Just at the beginning of the second quarter, the asset started rising again and has been on the rise since then. While there have been several controversies on the authenticity and cause of the surge, JP Morgan strategists say the surge bears resemblance to the one prior to the 2017 bull run that raised Bitcoin price to $20,000.

A surge above intrinsic value

Intrinsic value is what an asset is perceived to be worth estimated by calculation, and it is used in the fundamental analysis for valuation. JP Morgan strategists calculated the “cost of production” of Bitcoin assuming it was a commodity. Since it is not, they used inputs that pertain to the mining of Bitcoin such as estimated computational power, electricity expense and hardware energy efficiency. Their conclusion is that Bitcoin has surged ahead of its “intrinsic value”, resembling a similar incidence that preceded the 2017 bull market.

This report could have significant consequences on the perspective on the current Bitcoin market which is believed to be heading towards a major bull run. A cryptocurrency analyst known as Galaxy earlier this month predicted that Bitcoin could reach $330,000 by 2021 if the 2017 patterns are mirrored. JP Morgan’s conclusion may be pointing to the actualization of this prediction and several others that are dependent on a repeat of 2017 patterns.

Is a bull run imminent?

So, the next logical question is whether a bull run is imminent for Bitcoin. The asset is currently trading at $7,890 after rising to nearly $8,300 yesterday. Analysts believe that how Bitcoin closes this week will determine its performance in the coming weeks. The closing also depends on the decision of the SEC Tomorrow 21 May. Will Bitcoin still hit a bull run if things turn out differently?

Summary

Article Name

JP Morgan Confirms Bitcoin Price Surge Mimics 2017 Bull Run

Description

Bitcoin is repeating the pattern that led to 2017 bull market according to a report by JP Morgan strategists. Could Bitcoin be entering a bull market soon?

Author

Ponvang Bulus

Publisher Name

Coingape

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